CLOB
VanEck AA-BB CLO ETF
📎 Investment Objective
The VanEck AA-BB CLO ETF (CLOB) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the MVIS US CLO AAA-BB Index, which tracks the performance of US dollar-denominated collateralized loan obligations (CLOs) rated AAA to BB.
Overview
ETF tracking VanEck AA-BB CLO ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The VanEck AA-BB CLO ETF (CLOB) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the MVIS US CLO AAA-BB Index, which tracks the performance of US dollar-denominated collateralized loan obligations (CLOs) rated AAA to BB.
🎯 Investment Strategy
The ETF employs a passive management approach, investing in a representative sample of securities included in the underlying index to seek to track its performance. The fund primarily invests in CLO tranches rated AAA to BB, which are backed by diversified portfolios of senior secured corporate loans.
✨ Key Features
- Provides exposure to the US CLO market, which is a large and growing segment of the fixed income universe
- Focuses on higher-quality CLO tranches, potentially offering more stability and lower risk compared to lower-rated CLO investments
- Passively managed to track the performance of the underlying index
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Credit risk: The fund is exposed to the credit risk of the underlying CLO investments, which could experience defaults or downgrades
- Interest rate risk: CLO values may decline as interest rates rise
- Liquidity risk: The CLO market can experience periods of reduced liquidity, which may impact the fund's ability to sell holdings
- Concentration risk: The fund's investments are concentrated in the CLO market, which may be more volatile than a more diversified portfolio
👤 Best For
The VanEck AA-BB CLO ETF may be suitable for investors seeking exposure to the higher-quality segment of the US CLO market as part of a diversified fixed income allocation. Investors should have a medium-term investment horizon and be comfortable with the risks associated with CLO investments.